Bulletins – August 1999

August 1999

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Bulletin (PDF format, 33 KB, 1 page)

Proof of payment and other supporting documents

CSBFP has received a number of enquiries as to what constitutes proof of payment, and this bulletin outlines acceptable practices.

Cancelled cheque: A cancelled cheque payable to the supplier and accompanied by the invoice is the preferred proof of payment. Payment by debit or credit card is also acceptable.

Cash payment: A supplier's invoice stamped "paid", indicating "in cash", can be accepted for an amount less than $500.00. The lender must ensure that the stamp was affixed by the supplier, not the borrower.

Sales contract: Formal executed sales contracts in respect of acquisitions of real property or going concerns, for example, generally make reference to the purchase price paid and contain a section referring to the payment and indicating "…receipt whereof is hereby acknowledged." Such an attestation by a lawyer or notary is sufficient proof of payment.

Attestation: A receipt or an attestation by the supplier to the effect that the invoice has been paid is acceptable. Where the loan disbursement is effected by a lawyer or notary, CSBFP accepts a photocopy of the disbursement journal.

The following practices do not constitute proof of payment to the effect that the CSBF loan has been used to finance the acquisition or improvement of assets.

Payment in shares: Since the asset acquisition or improvement was already financed by the issue of shares, the CSBF loan is therefore not being used to finance an acquisition.

Payment by exchange or barter: This practice is also unacceptable for the purposes of the CSBF loan, since the asset was already acquired and paid for by an exchange of goods or services. The only exception to this rule pertains to trade-ins which serves as partial payment during the acquisition of an asset financed by a CSBF loan.

CSBFA Forms

ic0664e, ic0990e, ic1194e, ic2707e

Forms for the Canada Small Business Financing Program are now available in 3 electronic formats.

PDF: To open a PDF file (*.pdf) you must use the Adobe Acrobat Reader which is available free of charge at http://www.adobe.fr/products/acrobat/readstep.html. The Reader will allow you to enter the information into the file and to print the form. However, to save the file you will need to purchase the Adobe software which is approximately $350.00 CDN.

Word: To open a Word file (*.doc) you must use the word processing software Microsoft Word.

Jetform: To open the Jetform file (*.mdf) you must use the Jetform Filler software. To purchase Jetform Filler you can call 1-800-538-3676. The price is approximately $100.00 CDN per copy.

PDF files are available for download from our Internet site. Other formats (Word, Jetform) will be available in early September.

If you do not have access to the Internet or would like more information, please contact Rose Hervieux, Information Management Advisor, at tel: 613-957-2336, Fax: 613-952-0290.

Please note that these forms are prescribed by the Regulations and cannot be modified or altered.

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